Race has successfully acquired a Nickel concession in Sulawesi, Indonesia and four Iron Sand Concessions in Sumatra, Indonesia. Race has appointed Minarco-MineConsult (MMC) to be the Mining Consultant for these two Projects. Race also appointed one of the leading engineering and construction groups in the world SNC Lavalin (SNC) for Technical Review on Environmental and Infrastructure and On Site Construction Supervision. Race will continue to explore and acquire high quality and significant reserves of other valuable mineral concessions in different countries.



The Nickel concession is 2000 hectares in size and is divided into Site A and Site B of around 1000 hectares each. An extensive exploration program had begun in early 2009 and an Inferred Resources Report is completed by MMC for Site A in September 2009. The Report indicated very high grading of resources and we decided to begin the construction of a haul road and pier and an extensive mining operation in 2010. We expect the mining and the sales of nickel ores will begin in the third and fourth quarter of 2010. At the meantime, the exploration of Site B is proceeding and a Reserve Report will be completed around mid 2010. We also began negotiation of a larger and good potential nickel concession in the adjacent area to increase our total reserve for this project. All documents are expected to be completed by first half of 2010.

Our nickel deposits are formed very shallow from the surface. The limonite rests atop the saprolite and the two levels consist of medium to high grading of nickel contents. The ores are low cost to mine and can be easily mined and extracted using an open pit mining techniques using simple truck and shovel operations. The production capacity for the first several months is 50,000 to 100,000 wet metric tons of nickel ores per month at a grade of 1.8% or above nickel content and eventually increases to the target of 200,000 wet metric tons production level. In addition, we will also negotiate with different accredited design institutes for designing and constructing a Ferronickel smelting plant which will substantially increase the profit return and income flow for the Group. Please see under Further Development for details of the smelting plant.

The Iron Sand Project consists of 4 concessions totaling over 14,000 hectares of minable area. The iron sand ores also utilize the easiest mining method of open cut and the raw material can be upgraded to above 61-62% iron content with simple processing procedures. The minerals of this project have been analyzed and a report has been issued by SinoSteel Maanshan Research Institute from China. Nevertheless, an extensive exploration program will be carried by MMC in 2010. We will first complete a hydro survey and a ground magnetic survey and then drilling and samples gathering will be done. This Project has great potential to develop into a significant global iron sand reserve.

After an exploration report is completed by MMC, we will design a mining program and commence mining operation. We target to produce 100,000 tons of refined iron ore fines above 61-62% per month at the beginning and eventually increase to 2,400,000 tons annual production level.

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